LCCI To CBN: Focus On Policies That Will Address Inflation

LCCI To CBN: Focus On Policy That Will Address Inflation

The Lagos Chamber of Commerce and Industry (LCCI), has charged the Central Bank of Nigeria (CBN) to focus on more policies that are poised to provide support to the real sector and expand the country’s export infrastructure in order to contain domestic inflation.

In its reaction to the recent increase in the Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) of the CBN, the chamber urged the central bank and the fiscal authorities to intervene with policies and instruments that could boost growth in the economy since rate hikes are known to weaken economic growth.

According to the Director General of LCCI, Dr. Chinyere Almona, who charged the CBN, a further increase in the policy rate would put additional pressure on businesses with the resultant effect of rising operating costs, low productivity, and job losses. 

His words: “In Nigeria, we need to tackle food inflation from the roots looking at issues like targeted support to the agriculture sector, manufacturing, and the provision of more export infrastructure for businesses to export more and earn more foreign exchange.

“We urge the CBN to look further inward at the peculiar situations driving inflationary pressures within the Nigerian economy. Rate hikes are known to weaken growth, and as such, it is expected that the monetary and fiscal authorities intervene with policies and instruments that are growth-boosting. We are also calling on the government to commence preventive measures against the expectation of flooding in 2023.

“This was our major concern regarding the implementation of more taxes, as provided in the 2022 Finance Bill. We urge the government to consider streamlining these issues such that they do not swamp businesses and render them unproductive and uncompetitive.

“Beyond the rate hikes, policymakers need to consider more actions to increase and stabilise oil production levels to earn more FOREX. Better coordination of fiscal policies can complement the deployment of monetary instruments by the CBN.”

Meanwhile, in what appeared to be a surprising development, Nigeria’s inflation rate eased to 21.34% in December 2022 amid the Christmas and New year festivities.

The National Bureau of Statistics (NBS) reported that the figure dropped from the 21.47% recorded in November last year, indicating a decline of 0.12% points when compared to the previous month.

LEAVE A REPLY

Please enter your comment!
Please enter your name here